Bitcoin price has enjoyed a truly classic weekend of bull runs that began early on Friday as the world’s most traded digital asset shrugged off weeks of bearish patterns to record its biggest gains yet in 2019, even breaching USD 10,000 temporarily.

Yesterday, we wondered if North American markets would also take some profit, after seeing Asian traders to do twice in two days. They did not. In fact, after threatening to give up even the ground on USD 9,000, with a low of USD 9,160 about 24 hours ago, American traders continued to buy up Bitcoin, with price sharply rising for Japan to wake up to USD 9,600.

Further trading in the Far East actually saw Bitcoin climb as high as USD 9,930, but a test of the psychological resistance did not materialize and price sits comfortably now at USD 9,566 at 6:50 am UTC London (CoinDesk), just hours away from Central Europe taking over.

All altcoins in the Top 20 are also holding onto daily gains, with NEO surprisingly continuing its push for higher prices, recording over 20% gains for the second consecutive day. Tron (TRX) is also a big winner with 24% gains, but it is QTUM that wins the altcoin boom on Monday, with price touching USD 2.50 to record over 35% growth.

Sentiment, for the time being, is running wild on social media, with Twitter being the battleground of speculation on price pumps, crediting Chinese president Xi Jinping, who last week made an astounding call for the state to focus on blockchain technology development. We think it is only a coincidence, since Xi’s stance is hardly new, nor surprising.

Much more likely is a combination of many factors in the market, with strong fundamentals seemingly overcoming bearish technicals, perhaps spurred by the big moves on BitMEX we covered. And now, there is also talk of some Tether arbitrage going on, in relation to the arrest of Crypto Capital’s boss Ivan Manuel Molina Lee with suspected links to money laundering for drug cartels.

This news happened on 25 October, just hours before Bitcoin jumped past USD 8,000 in a 10% surge. It is also known that Panama-based Crypto Capital has close business relationships with Bitfinex — there is still an ongoing legal case involving some USD 850 million in Tether (USDT) allegedly missing because of a loan given out to the former from the latter — so people online are building the links.

What happened in USDT markets the very next day only served to fan the flames of the rumors, where some Tether markets looked suspiciously down by about 5%, according to Coin360. The gist of the discussions is that Tether being dumped into Bitcoin was what caused the short squeeze, as sell orderbooks were rapidly eaten up by Tether buys. The uptick in Bitcoin trading volume on BitMEX could also have been related.

Meanwhile, the bad news in fiat markets just keeps getting worse. The US Federal Reserve, essentially the central bank of USA, has now officially printed new dollar bills this month almost 50% more than the entire market capitalization of Bitcoin. Crypto influencer Dennis Parker had last week already pointed out how the Fed has pumped in over USD 210 billion into the US economy to prevent it from slowing down, while Bitcoin market cap is only USD 148 billion.

Aggressive quantitative easing strategies have been the norm for the US, but also this year for the Eurozone, and these blatant moves have economists worrying about what the future holds for the global economy.

As central banks buy up government bonds, Parker notes how the Fed’s balance sheet jumped in September to USD 3.97 trillion. The Fed themselves project a balance shet of USD 4.7 trillion by 2025.

The warnings are coming fast and thick. Ex Bank of England governor Mervyn King told an audience in a speech at last week’s International Monetary Fund general meeting that the entire planet was “sleepwalking” into a financial crisis that would eclipse the last one in 2008-2009. He warned:

“By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis.”

Earlier in 2017, King had chastised the banking system, when writing for the Wall Street Journal, he believed that bankers were simply not learning the lessons of the past: “Are we really so much cleverer than the financiers of the past?

The IMF itself said recently that the risk of global growth experiencing a sharper decline has “certainly increased“.

Doom and gloom for centralized currencies, it seems. Whether it be crypto like Tether or fiat like US dollar, only Bitcoin is impervious to the threats faced by currencies controlled by single entities.

 

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